US Senator proposes barring Chinese firms using third countries to evade tariffs

WASHINGTON (Reuters) – Republican U.S. Senator Marco Rubio on Thursday proposed to bar Chinese manufactures from benefiting from favorable U.S. trade rules by setting up factories in other countries like Mexico, Vietnam or Malaysia.

Rubio, top Republican on the Senate Intelligence Committee, said Chinese manufacturers are shifting production to other countries that face lower U.S. tariffs.

He said the practice allows Chinese companies “to evade tariffs and flood the U.S. market with cheap goods.” Rubio in March proposed legislation to extend higher tariffs to vehicles produced by Chinese automakers in other countries like Mexico.